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Warning issued over off-the-plan purchases in Qld
The state’s Attorney-General is cautioning consumers to be wary of signing purchase contracts for off-the-plan properties.
The honourable Shannon Fentiman, who is also the state’s Minister for Justice, acknowledges that off-the-plan residential property contracts are “complex”, involving non-standard terms.
“They also involve risks for both the developer and buyer, such as changing property values over the period of the contract,” she stated.
“I strongly urge anyone looking to buy off the plan to seek legal advice before signing a contract.”
Her comments come as the state requests consumer feedback on off-the-plan purchases ahead of possible reform in the area.
The reforms would aim to better protect those purchasers who have signed off-the-plan contracts.
The Attorney-General said that “since the pandemic we have seen more people move to Queensland, resulting in growing property sales including buying ‘off the plan’ developments”.
“I am aware of recent reports of developers terminating contracts for ‘off the plan’ sale of land if the contract is not settled within a specified timeframe,” she stated.
“At the same time, property prices have been rising, which may leave these buyers with limited or no options within their budget.
“That’s why the Palaszczuk government is asking both home buyers and property developers to have their say on these residential property laws.”
The online survey, available through the Office of Fair Trading website, remains open until 14 September 2022.
Weighing in on the consumer consultation, member for Gaven Meaghan Scanlon said an influx of people into the state requires industry planning for and developing more housing supply.
“Buying a home is one of the biggest decisions and investments Queenslanders will make in their lifetime — so it’s really important that they’re protected when entering a contract for an off the plan development,” Ms Scanlon said.
She’s encouraging both property buyers and industry to “have their say”.
